Fischer resigns from Federal Reserve Board

07 September 2017

In his letter of resignation, he said it was for personal reasons and did not elaborate. We believe the likely prospects of a Cohn Fed Chair led both Yellen and Draghi to rail against wholesale big bank deregulation at Jackson Hole in late August. I'm personally grateful for his friendship and his service.

Fischer has been highly influential at the Fed.

"Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations", Fed Chair Janet Yellen said in a statement.

In his two-paragraph letter to the president, Fischer hailed the US economy's progress and the Fed's reforms to make the financial system more resilient.

Fischer, who was born in Zambia and educated in London, was nominated to the Fed by President Barack Obama after serving as the governor of the Bank of Israel from 2005 to 2013. Previously, he was vice chairman of Citigroup Inc. The Senate is expected to vote tomorrow on the nomination of Randal Quarles, who was appointed by President Trump to serve as the Fed's vice chairman for supervision. He has worked as a chief economist at the World Bank and taught economics at MIT.

But with Fischer's soon-to-be-vacant seat, the president has the responsibility for nominating a candidate to the seven-member Board of Governors, and each much be confirmed by the Senate. The Fed is talking about an interest rate hike, but the real bombshell is reining in the $4.5 trillion United States federal budget. He helped shape regulatory policy keeping banks in check and accountable, and he stands by the Fed's approach even as Trump considers alternatives.

Since December 2015, the Fed has raised rates four times, including this March and June. Rate increases are a sign that the economy is improving.